By Alastair Sharp TORONTO, Sept 26 (Reuters) - Canada's main stock index fellfor a fifth straight session on Wednesday with energy sharesleading the retreat as oil prices dropped and investors frettedabout renewed tension in the euro zone. The resource-laden Toronto index has now given up all thegains it made after the U.S. Federal Reserve unveiled a majorstimulus program earlier this month that buttressed a similarmove from the European Central Bank. "Emotions are driving reactions in the marketplace," saidBrian Pow, a research and equity analyst at Acumen CapitalPartners in Calgary. Oil producer Canadian Natural Resources Ltd closed1.3 percent lower at C$30.53, and Suncor Energy Inc,Canada's No. 1 integrated oil producer and refiner, was down 0.7percent at C$32.01. Crude prices also wiped away the gains they made after theFed and ECB stimulus measures, falling more than 1 percentbefore paring some of those losses. Rising popular opposition in Greece and Spain to measuresaimed at resolving the euro zone's debt crisis unnervedinvestors already worried about weak global economic growth.

"It'll probably take some pretty drastic adjustments over inEurope to stop the bouncing around," Pow said. Market anxiety mounted after Greek police fired teargas atyouths hurling petrol bombs and stones as tens of thousands tookto the streets in Athens in Greece's biggest anti-austeritydemonstration in months. The demonstration followed violent protests in Spain andreignited worries that the euro zone debt crisis is deepeningdespite efforts by central banks to reflate economies. "Markets have a very tough time dealing with uncertainty,and in a word, that is what's dominated this marketplace, theuncertainty of the outlook ahead," said Peter Chandler, a seniorvice-president at Canaccord Wealth Management based in Waterloo,Ontario. The benchmark Toronto Stock Exchange's S&P/TSX compositeindex lost 24.32 points, or 0.20 percent, to close at12,232.86, its lowest settle since September 12.

TAKE YOUR POSITIONS Canaccord's Chandler suggested the fall was a naturalreaction to a lack of catalysts. "The market is stuck in a trading range, it's at the highend of its range now and in the absence of more meaningfuleconomic developments or news the market stays in a tradingrange," he said. One of the big bright spots was a 5.8 percent rise to C$6.88in Research In Motion Ltd shares, which put in a secondday of solid gains after the struggling BlackBerry makersurprised investors with upbeat subscriber numbers. RIM reportsquarterly results after the market close on Thursday.

Gold miners were also surprisingly buoyant despite a fall inbullion prices to an almost two-week low. The world's biggest producer of the precious metal, BarrickGold Corp, ending up 0.1 percent at C$40.31 afterdropping in early trade. Goldcorp had the biggestpositive impact on the index, up 1 percent at C$44.31. "People with a longer-term view are trying to look throughthat (lack of market confidence) and take advantage of some ofthe opportunities as stocks come off," said Acumen's Pow,pointing to financial stocks in mortgage and insurance, anddiscounted oil services shares. Canadian shares are expected to make further gains this yearand into the middle of 2013, a Reuters poll of marketstrategists released on Wednesday showed, as the recent centralbank stimulus is expected to lift lagging resource stocks.

Shares in private equity company Onex Corp gained0.3 percent to C$38.20, reversing early losses, after it said itwould buy German plastics machinery maker KraussMaffei AG for568 million euros ($736 million). Talisman Energy Inc shares dipped 0.3 percent toC$13.22 even though a company executive said Talisman will havenew crude oil and condensate production coming online in Vietnamand Papua New Guinea in the next two years to meet growingdemand in Asia. Base metal miner Lundin Mining Corp fell 3.4percent to C$4.79 after it said it will not exercise its optionto buy a stake in the Touro copper mine in northern Spain as itsees insufficient returns from the project.